The file Catalog Marketing.xlsx contains recent data on 1000 HyTex customers.
a. Create a pivot table of average amount spent versus the number of catalogs sent. Is there any evidence that these two variables are related? Would it make sense to enter Catalogs, as is, in a regression equation for Amount Spent, or should dummies be used? Explain.
b. Create a pivot table of average amount spent versus History. Is there any evidence that these two variables are related? Would it make sense to enter History, as is, in a regression equation for Amount Spent, or should dummies be used? Explain.
c. Answer part b with History replaced by Age.
d. Base on your results from parts a through c, estimate an appropriate regression equation for Amount Spent, using the appropriate forms for Catalogs, History, and Age, plus the variables Gender, Own Home, Married, and Close. Interpret this equation and comment on its usefulness in predicting Amount Spent.